A peculiar monolith materialized in the Nevada desert (let's hope it's not related to the SciFi novel "The Chronoliths,") rising rents could make it more difficult for the Fed to cut rates, and in a victory for President Biden, SCOTUS upheld a tax on overseas investments. Here are the other big remaining cases on the Supreme Court's docket before the end of June, and here's what else you might want to read this week:
"Regional Banks Are Locked in a Battle of Perception Over CRE"
Many regional banks have publicly expressed confidence in the value of their CRE portfolios. Investors aren't convinced, however, and their skittishness is reflected in banks' stock prices. Meanwhile, to protect themselves against future stress and bolster regulatory capital, some regionals are executing expensive synthetic risk transfers with opportunistic hedge funds. "You could call it aggressive defense," one analyst said.
Don't forget to sign up for our webinar on Tuesday at 2 p.m. ET with Phil Mobley, the national director of office analytics for CoStar, on the state of the CRE market.
"The Supreme Court May Soon Defang Bank Regulators, Especially the CFPB"
SCOTUS is set to rule on the amount of deference judges bestow upon regulators in interpreting laws, which could significantly curtail the regulatory power of federal banking agencies, particularly the CFPB.
"The Fight Over Credit Card Swipe Fees Hits the Road"
In early June, Illinois Governor J.B. Pritzker signed a measure prohibiting the collection of swipe fees on sales taxes, excise taxes, and tips for certain transactions. Similar legislation has been proposed in other states. Depending on how new laws are constructed, they could lead to a hodgepodge of interchange rules across the U.S., creating major operational challenges for banks.
"Midsize Companies Are Big Business for Wall Street's Megabanks"
Wall Street banks are increasingly doing business with companies valued at less than $2 billion, typically the territory of smaller lenders. Growing midsize companies can become a good source of repeat business for big banks, and they're attractive targets for private equity firms.
"Can Banks Find Another Jamie Dimon?"
One day soon, JPMorgan Chase CEO Jamie Dimon will step down, raising the question of not just who succeeds him at the bank but who takes his place in Washington, D.C. Though some lawmakers are not fans (cough, Sen. Elizabeth Warren, cough), most lawmakers are generally kind to Dimon, viewing him as an elder (if pugilistic) statesman of the industry. But it's not at all clear who would fill that role once he's gone. Punchbowl News' Brendan Pedersen goes through the options, or the lack thereof.
"How Owning Your Commercial Card Program Can Increase Profit"
Technological advances have made it easier than ever for community banks to offer commercial credit card programs, one CEO says. Read how offering commercial cards can increase revenues, deepen customer relationships, and make your institution stand out.
"Re-thinking Long-Term Incentives"
As the industry evolves, bank execs are reviewing incentives related to compensation, talent management, and succession planning to ensure alignment with their institutions' strategies.
"FDIC, OCC Find Stakeholders Hard to Please with Merger Review Guidelines"
Public comments on recent merger-review proposals from the FDIC and OCC reflect a wide range of opinions on the purpose of merger reviews and how stringent those reviews should be.
"Bank Execs Weigh In on Private Credit Threat"
Private credit is projected to mushroom into a $3.5 billion market over the next few years, according to BlackRock. Many bankers have downplayed the competitive threats posed by private lenders, but others are growing increasingly concerned about losing business.
"Citigroup Facing New Regulatory Knock on Its Living Will"
The FDIC is set to give the megabank a failing grade on its resolution plan in case of a failure or financial crisis, the Wall Street Journal reported. The bank has expressed confidence in its ability to wind itself down at no cost to taxpayers. Earlier this week, Citi's systemic importance was on display during an investor day focused on its services business, which is key to the operations of some 5,000 companies around the world and crucial to CEO Jane Fraser's turnaround strategy.
"Republicans Hold Their Fire on FDIC Chair Nominee"
The White House has tapped Christy Goldsmith Romero to replace Marty Gruenberg as chair of the FDIC, and so far, GOP lawmakers have offered little pushback. But they could just be saving their criticisms for the confirmation hearings. The support of centrist Democrats will be critical to Goldsmith Romero's securing the nomination.
"Setting the Stage for Banking the Next Generation"
The needs and desires of customers are constantly changing. To better understand how your customers may evolve, review this advice from Charles Potts, ICBA's executive vice president and chief innovation officer.
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Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
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